FRIENDS and business colleagues could end up fighting bitter legal wrangles against each other if they get involved in a controversial "money for nothing" scheme.
Trading Standards bosses have warned that over-enthusiastic selling of the Titan scheme currently sweeping the North West could end with people suing the associates who introduced them to the organisation. The move comes as Chief Trading Standards officer Jim Potts revealed how quickly recruitment figures grew to the point where whole towns would have to be involved to keep the scheme going.
The Misrepresentation Act of 1967 covers the use of misleading descriptions and leaves the way open for people to sue for their money in the County Court.
Mr Potts said: "We are very concerned that people are encouraged to join the scheme and recruit others by saying they cannot fail to make money or other such remarks.
"If they make misleading comments or statements then, if and when the scheme does fail there could be all sorts of legal recriminations down the line if people think it was misrepresented to them by their friends or colleagues.
"There could be a lot of personal animosity and if anyone is urging people to join this scheme then they must realise that people who fail to cover their costs will feel greatly aggrieved." Titan Business Club promises new recruits large sums of money in return for a £2,500 downpayment at secret meetings organised by invitation only.
They receive £450 for each of the first two recruits he brings to the scheme and £1,220 for each subsequent recruit.
Prospective members are shown an example based on them recruiting eight people, with two following waves of recruitment where each new member recruits two people.
But Mr Potts warned: "If after that stage each new member just recruits one person, by the 15th wave of recruitment you would need the population of a small town.
"By the 18th wave you would need one million people and by the 24th you would need the more than the population of Britain.
"That is why these schemes tend to blossom early and fail quickly. Sooner or later there are going to be people in the pyramid who are financially disadvantaged and they tend to far exceed the number of people who have made money on it."
The Government is currently considering new legislation aimed at tightening controls on pyramid selling schemes such as Titan.
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